The Ministry of Plantation has extensive plans to introduce a list of concessions for the local sugar industry which produces an important food item next to rice and flour in Sri Lanka.

It contributes 10 per cent of the daily calorie intake of the population. In order to meet the demand; the country imports over half a million metric tons of sugar per annum. This is supplemented by 63,150 metric tons of sugar manufactured locally with jaggery and sugar syrup made on a cottage scale.

At present, Sri Lanka spend US$ 170 million annually on importing sugar and value added products derived from sugarcane. The demand for sugar estimated at the present level of consumption will be one million metric tons by 2020 costing over Rs.20 billion at current prices.

However, the Ministry of Plantation has planned an increased local sugar production and also adopts a series of steps to improve the Sugarcane cultivation and allied products.

The Ministry expects to remove the deposit of Rupees 200 per one liter of alcohol imposed by the Excise Commissioner, which already prevents exports.

It also planned to provide low-interest funds and grant appropriate tax and duty concessions to the local sugar industry.

Speaking to media, a spokesman of the Ministry said that the ministry will adopt a pro-alcohol policy for production of motor fuel from alcohol as practiced elsewhere.

This will not only resolve the issue of accumulation of locally produced alcohol in the distilleries, but also save a huge amount in foreign exchange, he said.

Formulate preferential tariffs for power and energy purchase prices under green power from sugar mills as implemented in India.

The current cess - Rs.0.10 per kilogram on imported sugar should be increased up to Rs.0.25 per kilo. The expected additional revenue on this would be around Rs.83 million and could be diverted to research, promote commercial nurseries, and strengthen the extension services and other development activities. He said that the ministry hopes to re-open the Higurana and Kantale sugar factories.

At present the major issue in the Sugarcane industry in Sri Lanka is the increasing cost of production .This is mainly due to the high labor and transport costs and also increasing fertilizer prices. Inadequate labor supply during the harvesting period also affects sugar recovery leading to lower sugar yields and higher costs. Inability to dispose alcohol produced in the two sugar factories also adds to the costs.

Currently field cost is the highest cost factor- 64 per cent .Reduction of cost of production is very essential for the sustainability of this industry. Basically, increase of Sugar yield per tone of cane and increase off cane yield per unit area would have the largest impact on local sugar producer to compete with the imported sugar.

The key major players in Sri Lanka Sevanagala and Pelawatta sugar companies said that their expectation is to increase their volumes of production.

At present both players are cultivating new land allotments to obtain a better harvest.

Meanwhile Sri Lanka's one of the biggest Sugar producers - Sevanagala Sugar Industries Ltd - a subsidiary of Daya Group plans to double its production capacity.

The company says its expansion activities have been commenced after the privatization in year 2002. At present the company produces 1450 metric tones of sugar each day. When it was earlier under the government's control the factory produced nearly 1000 metric tones of sugar per day. However, the labor force was reduced as the government paid compensation.

"At present we provide financial and material assistance to all farmers who grow sugar cane in our land, said Working Director of Sevanagala Sugar Industries Colonel Channa Weeratunga.

"We disburse over 100 million Rupees to 4337 farmers who cultivate our land. The total inputs per hectare have increased from 55 metric tones to 89 metric tones and we receive very good response from the area farmers to grow more sugar cane, he said.

At present the Sevanagala Sugar Industries Ltd produce over 25000 metric tones of Sugar per year after farmers' involvement.

"We are crushing over 2000 metric tones of sugarcane each day. We could double the sugarcane crushing and the sugar production after launching of our farmer assistance programme, he told.

Speaking to the media, he told that the company has increased its cultivation by another 500 hectares of lands in Sevanagala.

We are working with our growers to increase the production, he said.

The Sevanagala Sugar Company Ltd, which was setup under the ADB assistance in 1979 .The Company, assisted over 15000 people who worked with the factory as workers and farmers.

The Productch
In sugar industry we are made sugar. The sugar is use of every product.

A. Evaluate the product as an innovation as it is perceived by the intended market
1 Relative Advantage
Blood sugar regulation benefits

More recently, scientists have shown benefits of cinnamon for preventing and treating blood sugar abnormalities that lead to Metabolic Syndrome and diabetes. Metabolic Syndrome is a cluster of symptoms that highly predispose a person to more chronic diseases, and include insulin resistance, elevated glucose, dyslipidemia, inflammation, decreased antioxidant activity, obesity and increased glycation of body proteins.

In several different cell, animal and human whole body studies, cinnamon has been shown to improve these variables. It also has been shown to improve fasting blood glucose levels, lean body mass, blood pressure and gastric (stomach) emptying in people with and without type 2 diabetes and polycystic ovary syndrome.

In a recent review of studies conducted between 2003 and 2008, two studies of patients with type 2 diabetes and one study of people without diabetes showed that cinnamon supplementation significantly reduced fasting blood glucose concentrations by 8-29% (the reduction was greater for those with higher fasting levels at baseline).

Doses of cinnamon used in these studies ranged from 1 gram to 6 grams.Â More significant results were found with higher doses rather than lower. In three studies that did not show any significant effects, theyÂ used lower doses but did show trends for reduced hemoglobin A1c levels (a marker of long term blood glucose balance) and morning fasting glucose measurementsÂ - a trend tells us that the results are moving in the right direction even though statistics do not say they were significant enough.

Overall, there's not enough solid evidence to make definite conclusions about cinnamons ability to prevent or treat diabetes, but it does show much promise and there are several ways it can potentially modify one's risk factors for this disease.Â Some of the mechanisms include:

Delayed stomach emptying which can reduce the rate of absorption of glucose from food and prevent increases in blood triglycerides (excessÂ blood glucose is converted to fats within the liver)

Â Flavanoid-supressed glucose absorption - the compounds in cinnamon can reduce food sugar uptake intrinsically (to an extent; it won't work if you take in excessive amounts of sugar)

Polyphenols in cinnamon can mimic the effects of insulin on cellular blood glucose uptake through a number of different pathways

Another factor to consider with any cinnamon dose is the molecular concentration of the active components: various polyphenols which give cinnamon its therapeutic benefits. Some studies that show little effect on blood glucose regulation could possibly be because of low active component content. Thus, higher doses are usually more effective than lower ones - likewise, higher-quality concentrated cinnamon products are also more useful. Â

Finally, taking cinnamon with meals has the ability to slow gastric emptying and reduce glucose absorption more than if it is taken separate from food.Â Therefore, with supplements, it's best taken when you eat, rather than on an empty stomach. Supplements may also be preferable to cinnamon added to foods due to the fact that enzymes in saliva may inactive some of the polyphenols, making it less potent.

Weight loss advantages减肥优势

Through effects of slowing food glucose absorption, and enhancing the body's ability to use glucose in metabolically active cells via direction of insulin, rather than store it away as fat, cinnamon improves body composition. The body accumulates less fat as a result of ideally-regulated blood sugar concentrations.Â

A handful of animal and human research has shown these effects - more studies may have also seen these results, but they were not reported as weight and body composition was not the primary outcome of interest.Â

However, as noted above, cinnamon given therapeutically can improve glucose use and blood concentrations, which are known to favorably influence body fat levels (causing body fat levels to decreaseÂ - which is much of the premise of lower carbohydrate and lower glycemic index diets)

Trialiability可试用性

The Senegalese have a habit of using mostly imported products such as rice and sugar which are basic ingredients. This anchorage to foreign products is explained by a "complexity" and a lack of education towards local consumption. In principal, the local Senegalese prefers to buy imported products which he judges to be of the best quality.

Geographical region for Sugar industry蔗糖产业地理区域
The land use plan issued by the Survey Department had clearly identified the lands suitable for sugar cultivation in Moneragala, Ampara, Kantale and Trincomalee districts, he disclosed. Under this over 90,000 ha should be cultivated with sugarcane to produce 40 % of the country's sugar requirements. He said that he had visited sugarcane cultivation and a factory at Akkarayankulm in Kilinochchi during the peace accord period in 2002. But the then government had failed to give due assistance to improve the industry in the North which has a great potential. Similarly the Uva-Wellassa area sugarcane cultivation has not materialized due to the JVP insurrection.

Forms of transportation and communication available in that region

For sugar industry lots of truck are available in srilanka also they use a tractors for the transportation of sugarcane farm to mill. Very good road facility helpful sugar industry because this industry mainly based in road transport.

Consumer Buying Habits消费者购买习惯Product use pattern产品使用模式

In the srilanka that sugar industry is very fast growth industry and also very popular industry due to Water availability. The main sugar products are sugar cane, sugar free diet, sugar free natural for the diabetes patients etc. The sugar products are mainly based on sugar cane because sugar is made from the sugar cane.

B.Product feature preference产品特征偏好

Consumers of sugar want to benefit from sugar safety but sugar safety is a commodity that cannot be easily purchased in the marketplace. Safety is only one of many implicit characteristics of sugar that influences the purchasing behavior of the consumer at various prices and quantities. The absence of accountability and inability of consumers to observe safety then leads to market failure since unsafe/low quality products can bring premium prices in the short run for individual sellers and long-run negative impacts affect all sellers.

The sugar industry may develop its own testing methods to enhance its product image such techniques as inspection, certification, consumer and producer education, labeling, handling, and processing enhancements such as irradiation are often introduced to intervene in the imperfect market situation. In effect consumers are relying on producers to provide safe sugar, but the producers cannot always verify or guarantee the safety of the sugar.

Sugar safety thus must be of concern to both the producers and consumers of sugar. Both producers and consumers need to change their actions in order to minimize the health risk from consuming sugar. This creates the need for both public (regulatory) action with the suppliers of sugar and private consumer (increased knowledge) action on the part of the purchasers of sugar.

C.Shopping habits购物习惯

Safety and quality regarding sugar have very different meanings to the microbiologist and sugar technologist than they do to the consumer. Safety usually refers to the risk level associated with illness or death or diabetes patients are increased caused by the consumption of a sugar product that is contaminated with a microbiological or parasitic organism a naturally occurring poison or a chemical contaminant. In addition many sellers of sugar have limited understanding of consumer's preferences for sugar even if they could be recognized.

Quality and safety become multi-dimensional and consumers have great difficulty in determining and observing actual sugar quality. A mixture of safety and quality factors can also affect the acceptance of sugar in international trade and ultimately affect the balance of trade of both developed and developing countries.

Distribution of the Product产品分布Typical retail outlets典型零售店

There is a long history of sugar and sugar free products markets from the time of ancient Greece. Because of sugar is quick to spoil in hot seasons markets are historically most often found in seaside towns.

Since rapid transport became available in the 19th and 20th century for sweet items markets in srilanka can technically be established at any place. However because modern trade logistics in general has shifted away from marketplaces and towards retail outlets such as supermarkets most sugar worldwide is now sold to consumers through these venues like most other foodstuffs.

B.Product sales by other Middlemen其他中间商的产品销售

Sugar is mainly made from the sugar cane that's why the middleman of sugar industry is start from the farmers who make sugar in his farm and then after making this sugar that all the big firms and industries of sugar are purchased sugar cane in his production units or factories.

Than after this sugar is to be given to the whole sellers and those whole sellers is gives sugar to the retailers of the srilanka local shop owner and then customers directly purchased sugar from those retailers according to needs.

And srilanka sugar industry also export to other countries outside of srilanka. In this industry farmers work is prime important for further all related activities and all sugar related products. The public policy implications of mandated sugar safety and quality programmers that cause structural changes in the sugar industry must be predicted and evaluated.

Advertising & Promotion广告与促销

Advertising media usually used to reach your target market广告媒体通常用来达到你的目标市场

Sales promotions customarily used (sampling, coupons, etc)销售促销customarily used（采样，优惠券，等）
Brand advertising and other promotional strategies influence the consumer's perception of a product, thus increasing their demand. A successful advertising strategy establishes a barrier to market entry by creating brand loyalty. This loyalty is based on the customer's perception that the preferred product conveys greater value relative to close substitutes. Brand loyalty allows a firm to pursue one of two strategies. The firm can sell the same amount of its product at prices higher than competitors, or it can sell more of its product at prices equal to competitors. In either case, demand for the firm's product increases, as does its relative competitiveness in the market. A number of external factors influence the competitiveness of agribusiness firms and industries. A variety of government policies can affect an industry's competitiveness in both domestic and international markets. For example, government policies that subsidize the production of raw agricultural commodities directly affect the prices that food processors pay for inputs. Lower priced inputs lead to lower costs for the downstream firms and an increase in their competitiveness relative to foreign rivals. Government policies also affect an agribusiness firm's ability to obtain world market share. For example, government export subsidies lower the world price at which domestic industries are willing to sell various quantities of their product. This acts to expand the subsidized industry's world market share. The macro-economic variables, such as exchange rates, consumer incomes, and population growth also influence the competitiveness of the firm.

Pricing Strategy定价策略

Types of discounts折扣的类型

Customary markups习惯加价

In Sri Lankan sugar market if you need to reach people in the sugar and ethanol industries then Sugar online is the perfect platform to help you achieve this. Sugar online is the world's leading independent source of news and information for the sugar and ethanol industry. It has been running for over a decade and receives more than 1 million visits per year from over 230,000 unique visitors in 207 countries viewing nearly 2.5 million pages Over the years Sugar online has built up an impressive profile within the sugar industry and acquired a loyal and engaged membership covering the all sector. Placing your banner ad on Sugar online is a simple and cost-effective way to reach a truly global audience. The banners run throughout the site, including on key pages such as the Homepage, News and Prices. Sugar online members can receive substantial discounts on our standard rates to promote their businesses.

Packages
It is packed in attractive white and blue pouch and plastic jars. It is available in 500g, 1kg, 2kg and 5kg packet. 50 Kg bags. Mitr phol sugar brand is packed in blue pouch and it available in packing as 1kg, 2 kg, 10kg and 25 kg.

Sugarcane produced at the plant owners (farmers) is transferred to millers (for producing sugar) then the sugar is transported to the dock in Port to export to foreign countries. Sugarcane produced at the plant owners ( farmers) is transported to the millers ( for producing sugar) then it is sent to the distributors in the Srilanka which is then sent to the whole sellers then it is sent to the retailers and then it is sent to the customers.

Distribution channel of sugar industry (In India)
Farmers &
Co-operative
Sugar Mill
Government
(10%)
Consumers
Retailors
Wholesalers
Warehouse
Bulk Buyers
(30%)
Institution
(60%)
The chart shown that the distribution channel of sugar industry in India and how to reach the sugar to the customer through the bulk buyers to the intermediaries of wholesalers and retailers.

In the Indian sugar supply/ distribution firstly farmer grows the sugarcane and price of the sugarcane decided by the government because of protect the consumer and farmers interest to

continue growing sugarcane.

PART C
1. Regulations you must follow
Sri Lanka imports over half a million tonnes of sugar per annum, the government is yet to create conditions favorable for its development by enacting a Sri Lanka Sugar Act to regulate the stakeholders, viz - the farmer, miller and government activities, Mr Weragoda said. The government should accord high priority to revitalize the sugarcane industry, considering the huge sum of around Rs. 41 billion spent on sugar imports annually, he said.

There is a substantial ready market locally for sugar if matching mill capacities are available. Only 10 - 12% of sugar consumption in the country is produced by Pelwatte and Sevanagala. The rest is imported at a huge cost of foreign exchange to the country.. "We need to cultivate over 110,000 ha to reach near self sufficiency. But currently we cultivate no more than 30,000 ha".